Crypto mining aided Nvidia's bottom line, but the digital asset industry's recent struggles haven't been a major cause of the stock's steep decline; bitcoin falls in Monday trading but remains near $21K. TheSamReynolds and JPRubin23 report
Bitcoin fell on Monday but remained comfortably above the $20,000 threshold it crossed more than a week ago.
"People are still using the next several months to determine where this is going, where this will bottom out, not just in crypto," Hany Rashwan of 21Shares told CoinDesk's First Mover program, noting recent months' correlation to equity markets that rebounded last week after months of almost nonstop declines.
Large-scale stock indexes dropped slightly with the tech-heavy Nasdaq and S&P 500, which contains a heavy tech component, both down less than a percentage point. The latter closed Friday with its biggest single-day gain in two years amid the revision of a major report showing consumers slightly more upbeat about the future rate of inflation and small signs of an economic cooling that might enable the U.S. central bank to scale back its monetary hawkishness later in the year.
Despite recent debacles in the crypto space, including the implosion of the TerraUSD stablecoin and liquidity problems of Three Arrows Capital, some analysts struck an optimistic note, particularly about DeFi projects which have weathered recent storms. In a market recap, Arca Research's Chief Investment Officer Jeff Dorman highlighted the 20%-30% spike in some cases last week for digital assets,"led by the most beaten-down sectors, DeFi and NFTs/Gaming.